April 25, 2007

Vietnam's Navico delays IPO to June

Vietnam's largest fish exporter, Navico, has delayed its initial public offering of 6 million shares to June and plans to list in July, chief executive Doan Toi told Thanh Nien News daily.

Toi said the change was due to a belief that June's abundant water supply will bring the company a good fortune.

Navico planned to set a starting price at VND100,000 (US$6.2), 10 times the stock's face value, for the share auction, he said.
 
The price suggests Navico aimed to raise at least VND600 billion (US$37 million) from selling shares which would equal a 10 percent stake.

Navico operates four fish processing plants and accounts for nearly 5 percent of Vietnam's US$3.3 billion of fish exports by 900 exporters last year.

Navico more than doubled its revenues to VND2.7 trillion (US$168 million) last year, due to robust export growth.

Navico shares were being traded on unofficial markets at around VND140,000 (US$8.7) per share and the company's price per earning ratio was 20 to 25, traders said.

The 60-percent Toi-owned company wants to increase fish exports, mainly catfish products, to US$250 million this year from US$163 million in 2006.

There was strong demand from new customers in the European Union and Russia, he added.

On Monday, the VN Index on the main exchange in Ho Chi Minh City dropped 3.89 percent to close at 931.18 points, but is still up nearly 24 percent so far this year.